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Anna Schosser16.05.202316 min read

What is the Role of AI in Human Resource Management?

What is the Role of AI in Human Resource Management?

According to statistics, the majority of the 250 HR leaders surveyed stated they are already using AI in HR functions such as employee records management (78%), payroll processing and benefits administration (77%), recruitment and hiring (73%), performance management (72%), and onboarding new employees (69%)

- Business News Daily 

In the modern business world, AI has become an essential part of human resource management. As companies strive to remain competitive and efficient, they are turning to AI-driven solutions to streamline their processes and maximize resources. From automated recruitment systems that identify top talent to sophisticated training programs that deliver personalized content, AI is revolutionizing HR departments around the globe.

In this blog post, we will explore the role of AI in Human Resource Management and how it can help organizations save time and money while improving employee engagement. We'll discuss the advantages of using AI for recruitment, onboarding, performance management, learning and development initiatives as well as the challenges associated with its implementation.

By leveraging advanced technologies such as machine learning and natural language processing, organizations can create a more streamlined HR process that helps them stay ahead of their competition in today's rapidly changing business environment.


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How does AI play a role in human resource management?

AI has become increasingly pervasive in human resource management. AI-driven solutions are being used to streamline many of the traditional processes associated with HR such as recruitment, onboarding, performance management, and learning and development initiatives.

Below is a list of six ways that AI plays a role in human resource management:

1. Streamlining recruitment and selection 

AI can help streamline the recruitment and selection process in human resources management. AI-driven solutions are used to quickly identify potential candidates who have the skills and experience needed for a job. It can also be used to make sure that companies hire the most qualified candidate by screening out any applicants who don't meet certain requirements. This helps save time and money while ensuring that only the best people are hired for each position.

Artificial intelligence has the ability to analyze candidate data quickly and accurately using advanced algorithms and machine learning capabilities. This allows it to identify the top candidates faster than recruiters. AI can provide valuable insights into a candidate's workplace behavior and personality using factors such as language analysis, tone of voice, and facial expressions that a regular recruiter may not be able to recognize through a CV.

Additionally, AI is helpful for recruiters in analyzing present and future workforce requirements, considering organizational strategy, performance data, and market trends. AI can also assist in creating precise and realistic job descriptions based on the competencies, and behaviors required for each position.

AI can also aid in enhancing your employer branding and reputation by highlighting your company culture, values, and benefits on various platforms and channels. By utilizing AI to attract potential candidates, you can increase your company's visibility and reach, attracting more high-quality applicants.

AI also helps you to automate and improve your screening process by scanning resumes, cover letters, and portfolios with algorithms and natural language processing. AI may also assist you in administering pre-screening exams and assessments, such as cognitive ability, personality, and skills evaluations, in gamified and interactive forms. You may save time and costs while reducing bias and mistakes by utilizing AI to screen your prospects.

2. Onboarding

Employee onboarding can be streamlined by automating manual, time-consuming activities with AI. Automation technology frees up time for onboarding teams to focus on the human side of bringing on a new team member. Onboarding automation tasks can involve updating databases, implementing training programs, and reducing FAQs.

By automating administrative chores like filling out paperwork, setting up accounts, and delivering training, AI can assist to speed the onboarding process. This allows HR professionals to focus on more strategic parts of the onboarding process, such as developing connections with new workers and assimilating them into the organization's culture.

 AI may also deliver individualized onboarding experiences based on each new employee's unique requirements and preferences, which can enhance engagement and retention.

Nick Gallimore, the managing director of people management at Advanced, a business software company shares his insight on the role of AI in onboarding: This ensures that at no part during the process will a candidate be ‘left hanging’ or ‘ghosted,’ which retains a positive image/reputation for the brand, which is vital in today’s very competitive talent market...This frees up HR staff to focus on more complex tasks. AI can also help to personalize the onboarding process by analyzing data on each employee, such as their skills and preferences, and tailoring their training accordingly.”



3. Learning and Development (L&D)

AI plays an important role in helping companies constantly teach their employees new skills and knowledge. AI can help find the best ways to learn and understand things, as well as suggest activities that are tailored to each person's individual needs. This helps employees stay up-to-date with the ever-changing business environment.

Artificial intelligence is revolutionizing the entire learning and development process and can help L&D professionals deliver better and more engaging learning. With AI, organizations can save time and money while ensuring the most effective learning outcomes for their employees.

AI-powered learning and development solutions can automatically deliver adaptive learning experiences for employees. By leveraging data, AI-driven algorithms can also assess the knowledge, skills, and experiences of all employees and deliver targeted learning content tailored to individual needs, preferences, and learning styles. This allows employees to improve their skills quickly and effectively. This personalized approach not only leads to better learning outcomes but can also increase employee engagement and retention.

Furthermore, AI can provide employees with personalized coaching by analyzing their performance data and providing tailored feedback. For example, having an AI-led learning and development program can examine individual employee performance and suggest specific areas for improvement, along with actionable advice.

This personalized coaching can help employees develop their skills and achieve their career goals in an efficient manner that also keeps employees motivated and optimistic about their personal and professional growth.

In addition to that, AI can assist HR professionals in enhancing their L&D programs by providing data-driven insights. By analyzing employee data, such as performance metrics and engagement surveys, AI-powered tools can recognize skills gaps and areas that need improvement. This helps HR professionals to develop customized L&D programs that target the specific requirements of their workforce.


4. Increasing performance management

There comes that time again when every employee walks into a conference room to take part in the performance review meeting. It is critical for any firm to have a well-defined performance management system in place. A solid performance management structure can measure employees' impact on the job. With this system in place, the impact of the organization's training may also be tracked. This framework will assist employees in aligning their job performance with the corporate goals and objectives.

However, setting the aim, doing a self-assessment, supervisors' appraisal, debating, and signing off are all time-consuming stages in traditional performance management.  In this case, AI can aid in the real-time monitoring of goals and offer feedback on what has been completed and what remains to be completed. 

AI also plays a role in eliminating any biases when it comes to comparing employee performance. This can be accomplished by establishing detailed and measurable goals. AI can also help in aligning underperforming employees with the necessary set of goals to increase performance levels.

Furthermore, it can also assist in providing information on employees' potential and predicting which employees will perform well or poorly, all of which can be highly useful information for HR professionals in succession planning.

HR professionals utilize AI to create goals, track team, and individual performance, learn about developments and changes, and save operational time. This leads to increased productivity and overall positive outcomes.

Retorio What is the Role of AI in Human Resource Management? group of people standing togther discussing


5. Employee engagement 

The use of Artificial Intelligence can improve the way businesses and employees interact. AI can be utilized for various employee engagement tasks like conducting intelligent surveys, providing real-time feedback, and offering rewards and recognition.

Here are some examples of the role that AI plays in employee engagement

  • Personalization: AI-powered tools can improve the employee experience by customizing learning and development programs and HR processes to meet the individual needs and preferences of every employee. This can increase employee satisfaction and engagement.
  • Responsiveness: The use of AI-powered chatbots and virtual assistants can offer around-the-clock assistance to employees by promptly answering their queries and providing feedback. This can result in better employee engagement by fostering a responsive and encouraging work atmosphere.
  • Data-driven insights: With the help of AI, HR professionals can evaluate employee data such as engagement surveys and performance metrics. They can then use this data to identify any potential issues and gain insights into the workforce. The findings can be used to develop targeted engagement programs and initiatives that cater to the specific needs and concerns of employees.

Furthermore, AI can use natural language processing and sentiment analysis to discover how engaged and motivated employees are feeling. Additionally, AI can also be a powerful factor in determining appropriate team composition by analyzing employee motivation and leveraging outcomes. AI can also understand what factors will motivate certain employees and advise managers on how to effectively encourage their teams.

Moreover, AI technology allows employees to communicate more freely and openly about their ideas and concerns. It provides real-time feedback to both employees and HR professionals, which can be positive or negative. As a result, employees can express their feelings without the need for physical meetings or scheduling a specific time.


6. Employee retention

Retaining talents serve to be one of the greatest challenges in the industry globally. Organizations are constantly experimenting with new strategies and methods to keep their employees for as long as possible.

Retention of employees is primarily the responsibility of human resource professionals. In this competitive environment, it can be challenging for HR professionals to keep their employees in the organization. HR attempts to address this issue by introducing several techniques inside the company. Therefore, AI can help with career progression planning by monitoring and evaluating employees' performance to identify any signs of stagnation or depression.

This will assist strategists and managers in planning the implementation of new learning and development (L&D) programs as well as identifying new growth opportunities.

Below are a few bullet points explaining the role that AI plays in improving employee retention:

  • Career planning: One of the main reasons employees choose to stay at a company is the potential for career progression and new opportunities. AI can help with this by monitoring employee performance to identify when they may be getting stuck and not growing. With this information, managers can introduce new learning and development programs and identify new areas for growth.
  • Identifying opportunities for growth:  AI has various applications for employee assessment, including evaluation of engagement and work performance. It can also notify managers when an employee needs a new challenge or has outgrown their current role. Furthermore, AI-based performance management tools can suggest training opportunities for employees. Employers can also use AI-assisted approaches for employee development and retention of talent at risk of leaving the company.
  • Better work-life balance: Employee satisfaction heavily relies on work-life balance, in which employees now seek more control over their work schedule and time. Utilizing AI can provide employees with the desired autonomy, while also meeting work requirements and needs.AI does this by helping employees automate repetitive and mundane tasks that can be completed much faster, giving employees the time to work on other tasks that require their own critical thinking and creativity whilst still getting their other tasks done on time.
  • Achievable Equitable compensation: In today's economy, businesses are aiming to stay competitive and prioritize equal pay for equal work. This raises the question of how to compensate employees effectively. Artificial Intelligence (AI) has the capability to analyze extensive data sets, recognize patterns and assist employers in offering fair and personalized compensation packages to their employees. The solutions mentioned are capable of evaluating market conditions, employee performance, and business outcomes to enhance compensation and rewards. With the help of these solutions, companies can establish clearer objectives, monitor employee progress, and suggest new methods to achieve better outcomes. AI, therefore, plays a role in helping employers create more favorable working conditions for their employees, which would be beneficial for everyone.
  • Improving productivity: Using AI can boost productivity, which in turn can improve employee retention. This can be achieved by automating tasks that are repetitive and consume a lot of time, offering employees real-time feedback and coaching, and pinpointing areas that can from process improvement. AI also enhances job satisfaction and retention of top talent by improving employee efficiency, reducing errors, and optimizing operations, ultimately leading to a more fulfilling and rewarding work environment while maximizing workforce potential.

You can also read more about why you should use AI in human resources


Advantages and disadvantages of AI in Human resource management


Advantages Disadvantages
Increased efficiency and accuracy in administrative tasks  Potentially high costs associated with implementing and maintaining AI technology
Improvement in the screening and selection process of candidates Potential for cybersecurity risks and data breaches
Improved employee engagement and retention by providing personalized experiences and real-time feedback  Dependence on AI technology, leading to potential disruptions if the technology fails
Improved human resource management's ability to make informed decisions by analyzing data  It is important to have greater transparency in AI algorithms. HR professionals should strive to gain a deeper understanding of AI algorithms to make more informed decisions. They must ensure that these algorithms are transparent and can be explained to prevent errors and unintentional biases.
Ensure compliance with labor laws and regulations No disadvantages
Streamlined, personalized, and effective learning and development No disadvantages
Increased productivity through routine task automation No disadvantages
Reduced bias associated with the screening process No disadvantages
HR employees can dedicate more time and concentration to tasks that require human interaction such as building closer relationships with candidates and clients and advancing organizational strategies  No disadvantages


You can watch this video below to see 3 specific ways that artificial intelligence is boosting human resource management:


What is the future of AI in human resource management?

By 2030, it is predicted that AI will create $13 trillion in economic activity globally, based on research. According to Richard Coombes, leader of HR transformation practices at Deloitte, AI is expected to reduce behavioral and perceptual biases in human interactions.

As AI technology continues to grow and develop over time, companies can expect to see more automation, personalization, and data-driven decision-making in human resource management. Artificial intelligence will continue to help in the improvement of human resource practices such as job posting, candidate screening, and employee performance management.

By delivering real-time data and insights, AI will also assist HR professionals in making smarter decisions.

Furthermore, human resource management should also anticipate the emergence of new positions and job functions in HR such as AI ethics officers, who will guarantee that AI algorithms are utilized in an ethical and fair manner. As AI becomes more interwoven into HR operations, these jobs will come increasingly crucial and HR professionals must guarantee that AI is utilized efficiently and equitably.


Deploying AI in HR

When deploying artificial intelligence in Human Resources, it is important to handle it with caution like any other technology. Some factors that need to be considered are listed below:

  • Finding reliable data sets: For successful AI outcomes, real-time and accurate data is critical. Something objective and all-encompassing. So, first, gather the necessary data, and then define the output-driven goal.
  • Using the proper AI implementation: The AI environment differs greatly from other IT environments. For implementation, specialized skills and procedures are required. Make sure to be explicit about gathering the correct data sources, as well as cleaning and curating them.
  • A clear understanding: It is critical to comprehend and comprehend the ideas to be driven. As a result, there should be clarity and instruction on the proper patterns to examine and act on.
  • Removing Bias: Using the algorithms and logic given to the system, AI can produce accurate and impartial outcomes. Make sure your data is accurate, and remember that AI will only do what you want it to do, not make decisions for you.


How can Retorio help your Human Resource Management? 


Retorio is an AI and behavioral intelligence platform that offers multifaceted help for streamlining your HRM processes. By harnessing AI technology, Retorio's platform empowers HR professionals to make smarter, data-driven decisions throughout the recruitment process. Retorio's AI-powered video analysis also allows organizations to obtain valuable insights into candidates' non-verbal cues, facial expressions, communication style, and overall behavior, allowing recruiters to better understand the candidate's fit for a specific role, some of which a recruiter themself cannot identify. 

Retorio's behavioral intelligence technology quickly identifies each candidate's strengths and areas for growth, saving HR personnel hours of work that they can devote elsewhere. This cutting-edge technology assures that all recruiting choices are based on objective assessments, eliminating bias and improving workplace diversity.

Moreover, Furthermore, HR departments can use Retorio's behavioral intelligence platform to extract relevant and actionable knowledge from massive volumes of employee data. HR managers will be able to detect trends, patterns, and gaps in personnel management by leveraging data analytics and visualization, allowing them to make educated strategic choices. Retorio's platform also provides significant data on employee performance, engagement, and career development, enabling HR departments to establish focused, and personalized training programs for each individual employee, support talent retention, and drive overall company success.

Retorio automates time-consuming and repetitive operations in HRM processes. The platform's AI-driven automation features free up HR professionals' valuable time from resume screening to interview scheduling, allowing them to focus on strategic goals and promoting a great employee experience. Furthermore, Retorio's user-friendly interface and connection with current HR systems enable smooth adoption and improve overall workflow efficiency.



The perfect time is now! Are you ready to start implementing AI easily and efficiently into your human resource management to improve your hiring and L&D process? Click on the button below to try it out now! 

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Key Takeaways

  • Artificial Intelligence (AI) can play an important role in human resource management as it can automate mundane tasks and reduce bias associated with the screening process.
  • AI can be used to support career growth, enhance employee engagement, and advance organizational strategies.
  • AI technology can help provide employees with more personalized and tailored career growth opportunities as well as improve employee engagement.
  • Organizations should consider the financial costs of implementing and maintaining AI in HR, as well as the risk of errors and unintentional biases.
  • In the future, AI will continue to grow and develop, leading to more automation, personalization, and data-driven decision-making in human resource management.




Artificial intelligence (AI) is a set of technologies and methods that allow machines to perform tasks requiring human thinking. It involves creating computer systems that can reason, learn and analyze data as humans do. In simple words, AI aims to replicate human intellect in machines.

Absolutely! AI can help HR professionals save time and reduce costs in a number of ways. For one, AI-based tools and applications are able to automate tedious tasks such as resume screening, interview scheduling, candidate matching and more. This means that less time spent on these mundane tasks, leaving HR teams with more time to focus on strategic initiatives.


Anna Schosser

I create engaging and informative content about the importance of artificial intelligence and video-based AI technology for recruitment. I discuss cutting-edge AI developments and new technology with storytelling skills.